Goodyear will sell EPD Inc. subdivision for $1,475 billion
The American tires manufacturer Goodyear Tire and Rubber Co. plans to sell its EPD Inc. business unit to the Carlyle Group investment company for 1,475 billion dollars. As it has become known such radical Goodyear’s measures are to be held within the limits of the program on the company’s re-structuring policy, which purpose is to focus Goodyear’s activity on manufacture of tires.
Earlier, Goodyear, the largest US tires manufacturer, has already declared about its intention to sell EPD Inc. subdivision in the 1st decade, 2007.
Now the financial business of the American tires manufacturer is far from the in the best positions. So, in 2006 the company has been compelled to borrow almost 1 billion dollars to cope with consequences of the working enterprises strike.
Let’s remind, that on October, 5th, 2006, the workers of 12 Goodyear’s American factories have declared strike. Trade unions did not manage to achieve the adoption of the workers requirements put forward the company’s management. Striking workers have declared, that they will not allow to close factories in the USA and to reduce workplaces. The opposition, which has prolonged contracts with employees for some months, has also caused the increase in charges of the company.
Therefore for increase of profitableness of Goodyear’s business, management considers an opportunity of transferring of a greater part of manufacture to China. Sale of EPD subdivision within the limits of re-structuring will also allow Goodyear to compensate the greater part of its losses.